A man is known by the company he keeps

I think that old adage is worth remembering when deciding to buy, sell or hold Carbon Revolution shares. At this point in time, the company Carbon Revolution is keeping includes Ford, General Motors, Ferrari and Renault. And we don't know how that list will grow with 15 programs up and running, eight awarded and seven in the detailed design and engineering phase.

Only a year ago I would have scoffed at the thought of buying an EV, today I'm seriously considering it with the likes of the Polestar 2 and Kia EV6 peaking my interest. And while losing unsprung weight is the holy grail for all car manufacturers, the benefits of lightweight one-piece carbon fibre wheels for EVs is quite frankly enormous. Reducing unsprung weight (rotational mass/rotational inertia) reduces the amount of energy the electric motors need to accelerate the vehicle. So better handling and better range. At the moment, every EV car review I watch or read touches on the 'range anxiety' issue. And Carbon Revolution wheels can be an important part of the range equation. The long range AWD versions of EVs come at a premium and I suspect people will be willing to part with more dollars to put the smartest wheels available on a range topping EV.

My only concern is that with a market capitalisation of AUD $134m Carbon Revolution a sitting duck for a takeover. I think it's undervalued and that's why I'm filling my boots.